In recent years, the Company has operated under four reportable operating segments which report to the Company’s president and chief executive officer, (the “Chief Operating Decision Maker”). These reportable operating segments, North America, Europe, Asia/Pacific and Latin America, are organized, managed and analyzed geographically and operate in one industry segment: the development and marketing of information management software and related services. The Company has evaluated operating segment performance based primarily on net revenues and certain operating expenses. The Company’s products are marketed internationally through the Company’s subsidiaries and through application resellers, OEMs and distributors.

Financial information for the Company’s North America, Europe, Asia/Pacific and Latin America operating segments is summarized below by year:

1

The Company makes allocations of revenue to operating segments depending on the location of the country where the order is placed, the location of the country where the license is installed or service is delivered, the type of revenue (license or service) and whether the sale was through a reseller or to an end user.

  The accounting policies of the segments are the same as those described in Note 1 – Summary of Significant Accounting Policies.
2 Operating income/(loss) excludes the effect of transfers between segments.
3 Represents consolidating adjustments such as elimination of intercompany balances.
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